AIMS & OBJECTIVES OF INDIAN CUSTOMS

AEO PROGRAMME

• To provide business entities an

internationally recognized certification
• To recognize business entities as “secure and
reliable” trading partners
• To incentivize business entities through
defined benefits that translate into savings in
time and cost
NEED FOR A NEW AEO PROGRAM
ATTRACTIONS
ESSENTIAL FEATURES
COVERAGE
ELIGIBILITY CRITERIA FOR A
BUSINESS ENTITY
ALL PLAYERS IN SUPPLY CHAIN CAN BE CERTIFIED
THREE TIERED AEO CERTIFICATION FOR
IMPORTER/EXPORTERS.
 APPLICATION
• Application to be submitted as per the Performa given in Annexure of Circular No
33/2016 Cus dated 22.07.2016.
• Applicant to nominate contact person/ authorised representative from company’s
own administration only.
• Earlier, application was to be addressed to AEO Programme Manager, DGPM,
New Delhi. Now, Circular No 03/2018-Cus dated 17.01.2018 has decentralised the
process.
• The application should be sent directly to the respective jurisdictional Customs
Chief Commissioner’s office with a copy to the AEO Programme Manager,
Directorate of International Customs or in case of any doubt, to the AEO
Programme Manager, Directorate of International Customs, 10th Floor, Tower II,
Jeevan Bharti Building, Connaught Place, New Delhi – 110001.
LEGAL COMPLIANCE REQUIREMENTS
 AEO – T1 CERTIFICATE NORMS
• Importers/exporters fulfilling the eligibility criteria may apply with
Documents/information pertaining to
• General compliance
• Legal compliance
• Records Maintenance compliance &
• Financial solvency.
• If it is found that the records are maintained to the satisfaction of
AEO Program Manager then the entity may be awarded the AEO
Tier-1 certificate.
 AEO – T2 CERTIFICATE NORMS
In addition to the criteria of AEO- T1, the AEO – T2 applicant should
fulfill the following 7 aspects of Safety & Security:
 AEO – T2 CERTIFICATE NORMS……
Certificate will be awarded to the applicant after : -

• Claims made in regard to the 7 aspects of security being

physically verified by AEO Team.

• On verification report that the assessment made by the

applicant & the documents filed along with application is true
and to the satisfaction of the AEO program manager

• Dates of visit to the places/premises to be decided by mutual

consent.
 AEO – T3 CERTIFICATE NORMS

• The economic operator should have continuously enjoyed

the status of AEO – T2 for at least two years preceding
the date of application for AEO – T3 status.
OR
• The economic operator must be an AEO – T2 certificate
holder and all its Business Partners have to be holders of
AEO – T2 or AEO – LO certificates or equivalent granted
by a foreign Customs
 REJECTION OF APPLICATION
• Application shall not be processed if [4.3]:-
 Incomplete;
 Not made by the legal person i.e. by legal entity.
 Where no Authorize person nominated as point of
contact for AEO.
 Applicant is subject to bankruptcy at the time of
application.
 Where previously granted AEO is revoked.
• Applications will rejected where:
 Applicant is not eligible for grant of AEO status or
 Where the deficiency noticed in the application
cannot be remedied.
BENEFITS ASSOCIATED WITH AEO TIER T1
BENEFITS ASSOCIATED WITH AEO TIER T2
BENEFITS ASSOCIATED WITH AEO TIER T3
SINGLE TIER AEO – LO

This certification is for Logistics Service Providers,

Custodians or Terminal Operators, Customs Brokers
& Warehouse Operators.
• Norms are same as AEO – T2 norms.
• Validity for the AEO – LO is 5 years.
 MAJOR BENEFITS FOR AEO – LO
• Waiver of BG for transshipment
Logistic
• Facility of running Bond
Service • Exemption from case to case permission for
Providers Transit
Custodian • Waiver of BG
And Terminal • Extension of approval of Custodians for period of
Operators 10 years
• Waiver of BG
Custom • Waiver from fee for renewal
Brokers • Validity extended till validity of AEO status

• Faster approval for new warehouses

Warehouse • WAIVER FROM antecedent verification/
Operators solvency certificate/security for extension of
warehousing / security for sensitive goods
MIGRATION PROCESS
BENEFITS ACCORDED TO AEOS IN MID TERM
REVIEW OF FOREIGN TRADE POLICY 2015-2016

A new scheme of Self-assessment based duty free

procurement of inputs required for exports has been
introduced. There will be no need of Standard Input Output
Norms in such cases and this will eliminate delays. It is based on
trust. Exporters will self-certify the requirement of duty
free materials/inputs. The scheme will be available to AEOs
and will get expanded as more and more AEOs join the program.
The scheme will improve ease of doing business.
Thank you !!!